(a) Every
agreement for a union municipal district under this chapter shall be submitted
to the attorney general before being presented to the voters for acceptance or
rejection. The attorney general shall determine whether the agreement is in
proper form and compatible with the laws of this state. In the event that the
attorney general fails to notify the joint survey committee provided for in
subchapter 2 of this chapter of his or her determination within 30 days after
receipt of a copy of the agreement, it shall be deemed to have been approved.

(b) In the
event that an agreement for a union municipal district deals in whole or in
part with services or facilities over which an officer or agency of the state
government has constitutional or statutory powers of control, the agreement
shall be submitted to him or her or it, at the time of its submission to the
attorney general. The officer or agency involved may file objections with the
attorney general.

(c) No
agreement shall be submitted to the voters unless it has been approved by the
attorney general under subsection (a) of this section. (Added 1969, No. 197
(Adj. Sess.), § 1; amended 2003, No. 122 (Adj. Sess.), § 85f.)

§
4803. Powers as supplementary

The powers
granted to municipalities by this chapter are supplementary to any other powers
heretofore or hereafter granted by any other statute for the same or similar
purposes. (Added 1969, No. 197 (Adj. Sess.), § 1.)

Subchapter 002: JOINT SURVEY COMMITTEES

§
4831. Creation of committee

The
legislative branch of any two or more municipalities may by agreement create a
joint municipal survey committee to plan for the strengthening of local
governments and to promote plans for more efficient and economical operation of
local government services within or by the participating municipalities. For
purposes of establishing a mosquito control district under chapter 85 of Title
6, a municipality may create a municipal survey committee under this section
with all the powers and duties that a joint municipal survey committee
possesses under this chapter. (Added 1969, No. 197 (Adj. Sess.), § 1; amended
2007, No. 34, § 2, eff. May 18, 2007.)

§
4832. Powers and duties

The committee
shall have the following powers for any of the purposes authorized by charter
or general statute:

(1) To make
surveys and studies and conduct research programs to enable municipalities to
make the most efficient use of their powers by cooperation with other
municipalities on a basis of mutual advantage, and thereby to provide services
and facilities in a manner and pursuant to forms of governmental organization
that will accord best with geographic, economic, population and other factors
influencing the needs and development of municipalities.

(2) To provide
for the distribution of information resulting from such surveys, studies and
programs.

(3) To consult
and cooperate with appropriate state, municipal and public or private agencies
in matters affecting municipal government.

(4) To employ
persons and adopt rules, regulations and by-laws as are necessary and proper to
effectuate the purposes of this chapter. (Added 1969, No. 197 (Adj. Sess.), §
1.)

§
4833. Officers

The members of
a joint municipal survey committee shall consist of an equal number of
representatives from each municipality designated by the legislative branch.
Members of the legislative branch of a municipality may serve as members of the
committee. The committee shall elect from its own number a chair and secretary
and other necessary officers to serve for such period as the members shall
decide. (Added 1969, No. 197 (Adj. Sess.), § 1; amended 2003, No. 122 (Adj.
Sess.), § 85g.)

Subchapter 003: UNION MUNICIPAL DISTRICTS

§
4861. Authorization

If a joint
municipal survey committee approves the creation of a union municipal district,
it shall prepare an agreement for the formation of the district and shall file
a copy with the legislative body, planning commission and clerk of each
participating municipality. (Added 1969, No. 197 (Adj. Sess.), § 1; amended
1973, No. 250 (Adj. Sess.), § 1.)

§
4862. Contents of agreement

Any agreement
for the creation of a union municipal district shall specify the following:

(1) Its
duration, if it is to be limited in time.

(2) The
precise organization, composition and nature of any separate legal or administrative
entity created thereby, with the powers delegated thereto.

(3) Its
purposes.

(4) The manner
of election or designation of officers of the district, and the powers and
duties thereof.

(5) The means
of establishing a budget and financing the union municipal district, and the
method, if so provided, for assessing the member municipalities or the
taxpayers thereof for the expenses of the district.

(6) The
permissible method or methods to be employed in accomplishing the partial or
complete termination of the agreement and for disposing of property thereon.

(7) The manner
in which the agreement may be amended or renewed, where applicable.

(8) The
conditions and procedure under which a municipality may withdraw from a union
municipal district or join a district already in operation.

(a) Any
participating municipality may enter into the agreement for the formation of
the union municipal district at any annual or special meeting of such
municipality duly warned for such purpose.

(b) The vote
on the question of accepting the agreement shall be by printed ballot
substantially as follows:

Shall the (name of municipality) enter into an agreement for the formation of
a union municipal district to be known as " ".

(c) All
elections in the separate municipalities shall be held on the same day. The
vote shall be by Australian ballot as provided for in subchapter 3 of chapter
55 of Title 17.

(d) Where
three or more municipalities are concerned in the voting, and at least two
approve the agreement, rejection of the agreement by one or more shall not
defeat the creation of a district composed of the municipalities voting
affirmatively on the question, if the joint survey committee decides that it is
feasible or practical to continue the district as a geographic unit, unless the
agreement as proposed expressly provides that specific participating
municipalities or a minimum number of participating municipalities shall
approve the agreement. Members from municipalities rejecting the agreement may
take no part in the decision of the joint survey committee, or in any
subsequent matters relating to the agreement rejected by the municipalities
they represent.

(e) The
governing body of the district may authorize the inclusion of additional
municipalities outside of the district. Any authorized municipality may take
action to enter into the district according to the approval procedures
contained herein.

(f) A
municipality which is a member of a union municipal district may vote to
withdraw from the union municipal district if one year has elapsed since said
union municipal district has become a body politic and corporate as provided in
section 4865 of this title and if the union municipal district has not voted to
bond for construction and improvements as provided in section 4866 of this
title.

(g) When a
majority of the voters of a member municipality present and voting at a meeting
of such municipality duly warned for that purpose shall vote to withdraw from a
union municipal district, the vote shall be certified by the clerk of that
municipality to the governing body of the union municipal district. Thereafter,
the governing body of the union municipal district shall give notice to the
remaining member municipalities of the vote to withdraw and such body shall hold
a meeting to determine whether it is in the best interests of the district to
continue to exist. Representatives of the member municipalities shall be given
an opportunity to be heard at such meeting together with any other interested
persons. After such meeting, the governing body may declare the district
dissolved immediately or as soon thereafter as each member municipality's
financial obligations have been satisfied, or it may declare that the district
shall continue to exist despite the withdrawal of the member municipality.

(h) A vote of
withdrawal taken after a union municipal district has become a body politic and
corporate but less than one year after that date shall be null and void. A vote
of withdrawal taken after the union municipal district has voted to bond itself
for construction and improvements shall likewise be null and void.

(i) The
membership of the withdrawing municipality shall terminate as of one year
following the vote to withdraw or as soon after such one year period as the
financial obligations of said withdrawing municipality have been paid to the
union municipal district. (Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973,
No. 250 (Adj. Sess.), § 3; 2001, No. 6, § 12(c), eff. April 10, 2001; 2003, No.
122 (Adj. Sess.), § 85h.)

If an employee
organization is the exclusive bargaining representative of employees in one or
more participating municipalities in a proposed agreement to create a union
municipal district for the purpose of providing services currently provided by
these employees, any questions of unit determination or representation
involving these employees shall be resolved by the state labor relations board
pursuant to chapter 22 of Title 21. (Added 2003, No. 122 (Adj. Sess.), § 85i.)

§
4865. Organization

Upon the
approval of the agreement by the required number of municipalities as provided
in section 4863 of this title, the union municipal district shall become a body
politic and corporate with the powers incident to a public corporation. The
district shall be known by the name given in the agreement, by that name may
sue and be sued, and may hold and convey real and personal estate for the use
of the district. (Added 1969, No. 197 (Adj. Sess.), § 1; amended 1973, No. 250
(Adj. Sess.), § 4.)

§
4866. Powers and duties

A union
municipal district may:

(1) Hire and
fix the compensation of employees.

(2) Contract
with consultants and other experts for services.

(3) Contract
with the state of Vermont or the federal government, or any agency or department
thereof, for services.

(4) Contract
with any participating municipality for the services of any officers or
employees of that municipality useful to it.

(5) Contract
with a county sheriff to provide law enforcement services to the union district.

(7) Make
recommendations for review and action to its participating municipalities and
other public agencies which perform functions within the region in which its
participating municipalities are located.

(8) Exercise
any other powers which are exercised or are capable of exercise by any of its
participating municipalities, and necessary or desirable for dealing with
problems of mutual concern.

(9) Borrow money
and issue evidence of indebtedness as provided by chapter 53 of this title.
Obligations incurred under such chapter shall be the joint and several
obligations of the district and of each member municipality but shall not
affect any limitation on indebtedness of a member municipality. The cost of
debt service shall be included in the annual budget of the district, and shall
be allocated among the member municipalities as provided in the agreement for
the allocation of the assessment for the ordinary expenses of the district.
Where voter approval is required pursuant to chapter 53 of this title, the
governing body of the district shall determine the number and location of
polling places, and when a majority of all the voters present and voting on the
question from all of the member municipalities at such meeting vote to
authorize the issuance of bonds, the district shall be authorized to issue the
bonds as provided in said chapter. The counting of ballots shall be conducted
by the governing board of the district together with the town or city clerk
from each member municipality or his or her designee. (Added 1969, No. 197
(Adj. Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 6; 2003, No. 122 (Adj.
Sess.), § 85j.)

§
4867. Cooperation with other agencies

Whenever a
union municipal district intends to operate in a geographical area which may
involve other governmental agencies acting in a regional capacity, it shall
notify that governmental agency of its plans and intentions. (Added 1969, No.
197 (Adj. Sess.), § 1.)

§
4868. Reports

Each union
municipal district shall prepare an annual report of its activities, including
a financial statement, to be distributed to its member municipal units, and
shall prepare and distribute any other reports required by its by-laws. (Added
1969, No. 197 (Adj. Sess.), § 1.)

Subchapter 004: INTERLOCAL CONTRACTS

§
4901. Authorization

(a) Any one or
more municipalities may contract with any one or more other municipalities to
perform any governmental service, activity, or undertaking which each
municipality entering into the contract is authorized by law to perform,
provided that the legislative body of each municipality approves the contract,
and expenses for such governmental service, activity, or undertaking are
included in a municipal budget approved under 17 V.S.A. § 2664 or comparable
charter provision.

(b) If the
interlocal contract is such that the participating municipalities or their
legislative bodies, commissions, boards, officers or voters have the authority
to enter into it, by virtue of any charter provision, statute, or the general
authority of such municipality or its officers and bodies, then the procedures
of this section for approval shall not be exclusive, it being the intent that
the powers and procedures set forth herein for interlocal contracts are
supplementary to any other powers or procedures heretofore or hereafter
possessed by any municipality.

(c) A
municipality may submit an interlocal contract to the attorney general prior to
approval by its legislative body. If such a contract is submitted, the attorney
general shall determine whether the contract is in proper form and compatible
with the laws of this state and notify the legislative body of the municipality
of his or her determination. In the event that the attorney general does not
respond to the request within 30 days after receipt of a copy of the contract,
the legislative body may approve the contract. (Added 1969, No. 197 (Adj.
Sess.), § 1; amended 1973, No. 250 (Adj. Sess.), § 5; 2003, No. 122 (Adj.
Sess.), § 85k.)

§
4902. Contents of contract

(a) The
contract shall set forth fully the purposes, powers, rights, and objectives,
and responsibilities of the contracting parties.

(b) The
contract may provide:

(1) That one
person shall hold the same office or offices in the participating
municipalities, notwithstanding any provision of law to the contrary.

(2) The method
of choosing officers by election or appointment, the term of office, the
compensation of, or mode of setting the compensation of, and the authority to
discharge, a person holding office under subdivision (1) of this subsection.

(3) For any
duly constituted local or regional board to have jurisdiction in all the
municipalities.

(4) For a
transfer of a local service function or activity or a portion thereof,
previously authorized or exercised by a municipality, to another municipality.

(5) For the
acquisition and maintenance of property, forces and services which the
municipalities participating in the contract are authorized by law to acquire
and maintain.

(6) For the
use of any property, equipment or personnel of a municipality which is a party
to the contract in connection with a joint service or activity authorized by
the terms of the contract.

(7) For the
deposit of funds appropriated, received or contributed for purposes of any
joint municipal activity or service in one or more special bank accounts, and
for designation of persons authorized to have custody of and to draw on such
funds.

(8) For the
exercise of any powers consistent with law in order to carry out the purposes
contemplated in the contract. (Added 1969, No. 197 (Adj. Sess.), § 1.)

Subchapter 005: OUTSIDE AID

§
4931. Source of funds

Any union
municipal district may accept, receive, and disburse in furtherance of the
duties and functions, any funds, grants, and services made available by the
state of Vermont and its agencies, the federal government and its agencies, any
municipality or other governmental unit whether or not a member of the
district, or private or civic sources. (Added 1969, No. 197 (Adj. Sess.), § 1.)

§
4932. Technical assistance

The state and
all departments, boards, bureaus, commissions, and other agencies thereof are
hereby authorized and empowered, within the limitations of the constitution, to
furnish and make available services, assistance, funds, property, and other
incentives to any two or more municipalities participating in a union municipal
district or interlocal contract so as to effectuate economy or simplification
in the administration or financing thereof. (Added 1969, No. 197 (Adj. Sess.), §
1.)

§
4933. Municipal contributions

Each
municipality which is a party to an interlocal contract shall have authority to
appropriate funds for the purpose of the contract and may also levy taxes and
issue bonds for the payment of the appropriation as a special purpose. Services
of personnel, use of equipment and office space, and other services may be
accepted from contracting municipalities either in addition to or as part of
their financial support. (Added 1969, No. 197 (Adj. Sess.), § 1.)

§
4934. Repealed. 1973, No. 250 (Adj. Sess.), § 7, eff. July 1, 1974.

Subchapter 006: INTERMUNICIPAL INSURANCE AGREEMENTS

§
4941. Definitions

As used in
this subchapter:

(1)
"Association" shall mean an association, compact or corporation, any
of which shall be organized not for profit, and formed for the purpose of
entering into intermunicipal insurance agreements under this subchapter.

(2)
"Municipality" shall mean "municipality" as defined in
section 4801 of this title, but shall also include the following:

(A) all
governmental entities defined in section 126 of Title 1 and in subdivision
1751(1) of this title;

(B) all bodies
corporate and politic created and existing under any special act of the general
assembly;

(C) all bodies
corporate and politic created and existing under an interstate compact;

(D) all bodies
corporate and politic created under intermunicipal agreements entered into and
approved as provided in subchapter 3 of chapter 121 of this title;

(E) all
supervisory unions created under subchapter 1 of chapter 7 of Title 16;

(F) all
incorporated school districts;

(G) all
entities providing educational services and eligible for state aid under
section 3447 of Title 16;

(H) all
consolidated water and sewer districts;

(I) all
ambulance districts created under subchapter 1 of chapter 71 of this title;

(J) all
regional mass transportation authorities created under chapter 127 of this
title;

(K) all local
housing authorities created under section 4003 of this title;

(L) all
conservation commissions created under section 4501 of this title;

(M) all
special assessment or tax increment financing districts created under subchapter
5 of chapter 53 of this title;

(N) all
counties established by chapter 1 of this title;

(O) all
regional planning commissions established under chapter 117 of this title;

Two or more
municipalities, by resolution of their respective legislative bodies or boards,
may establish and enter into agreements for obtaining or effecting insurance by
self-insurance, for obtaining or effecting insurance from any insurer
authorized to transact business in this state as an admitted or surplus lines
carrier, or for obtaining and effecting insurance secured in accordance with
any other method provided by law, or by combination of the provisions of this
section for obtaining and effecting insurance. Agreements made pursuant to this
section may provide for pooling of self-insurance reserves, risks, claims and
losses, and of administrative services and expenses associated with the same,
among municipalities. To accomplish the purposes of this subchapter, two or
more municipalities may form an association under the laws of this state to
develop and administer an intermunicipal risk management program, having as its
purposes reducing the risk of its members; safety engineering; distributing,
sharing, and pooling risks; acquiring insurance, excess loss insurance, or
reinsurance; and processing, paying, and defending claims against the members
of such association. (Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)

§
4943. Contributions

Any
contributions made to such association for the purpose of distributing,
sharing, or pooling risks shall be made on an actuarially sound basis, and any
such association shall have its books, records, and financial affairs audited
annually by a certified public accountant, copies of which shall be provided to
each municipal member and the Commissioner of Financial Regulation. (Added
1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986; amended 1989, No. 225 (Adj.
Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)

§
4944. Approval of agreements

(a) No
association organized under this subchapter shall receive funds from any
municipality for the purpose of distributing, sharing, or pooling any risk
until a plan for the operation of the association together with all contracts,
agreements, and any other documents underlying or implementing the plan, and
all amendments thereto, have been approved by the Commissioner of Financial
Regulation.

(b) The
Commissioner shall adopt rules to assist in the formation of such associations
and to expedite approval of any plan of operation. The Commissioner shall also
adopt rules relating to the administration and operation of such associations
in order to provide for the fiscal integrity of agreements entered into under
section 4942 of this title and to provide that trade, market, and claim
practices engaged in by such associations are equitable, fair, and consistent.
In adopting such rules, the Commissioner shall recognize that such associations
are undertaking an essential governmental function and that they shall not be
considered insurance companies nor insurers under the laws of this State.
(Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986; amended 1989, No.
225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)

§
4945. Inapplicability of other laws

The provisions
of section 4863 of this title shall not apply to the formation of an
association organized under this subchapter, nor to the participation therein
by a municipality. (Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)

§
4946. Declaration of policy

The general
assembly hereby finds and declares that the implementation of this subchapter
by any municipality and the activity of any association organized hereunder
shall constitute essential governmental functions. Participation by a
municipality in an agreement or association established hereunder shall not
create joint and several liability as a result of any act or omission of any
other municipality or association, nor shall such participation constitute a
waiver of sovereign immunity under 29 V.S.A. § 1403. (Added 1985, No. 237 (Adj.
Sess.), § 1, eff. June 3, 1986.)

(1)
"Health benefit association" means an association that offers one or
more health benefit plans to school employers for coverage of their school
employees.

(2)
"School employee" shall have the same meaning as in 16 V.S.A. § 2101.

(3)
"School employer" shall have the same meaning as in 16 V.S.A. § 2101.

(b) A health
benefit association shall offer the same plan or plans to all school employers.

(c) A health
benefit association shall solicit the input of the Commission on Public School
Employee Health Benefits established in 16 V.S.A. § 2102 regarding the design
of the health benefit plan or plans to be offered to school employers for
coverage of their school employees.

(d) The
governing board of a health benefit association shall be composed of the
following six members:

(1) three
members appointed by the organization representing the majority of the public
school boards in this State, who shall not be employees of the organization;
and

(2) three
members appointed by the labor organization representing the greatest number of
public school employees in the State, who shall not be employees of the
organization.

(e) A health
benefit association shall make all health benefit plans that it offers
available to approved or recognized independent schools operating in Vermont.
Participation shall not create joint and several liability as a result of any
act or omission of any other school, municipality, or association. Schools that
participate under this section shall be provided with copies of the annual
audit. The provisions of 16 V.S.A. § 166 shall apply for purposes of
determining whether a school qualifies as an "approved or recognized
independent school." (Added 1997,
No. 138 (Adj. Sess.), § 20a, eff. April 27, 1998; amended 2018, No. 11 (Sp.
Sess.), § H.25.)